Or should you save for a unknown future? Which is scarier?

Housing is historically unaffordable right now…So using your money ‘now’ may seem worthwhile to use towards travel or other luxuries.

But should that dissuade you from saving for your future? The short answer: No. You should still plan on living to the average age of ~73 years old (for men) and ~79 years old (for women).

But lets take a look at what housing in the U.S. looked like 40 years ago (~1984 at the time of writing).

In 1984, the median household income was ~$30,000. Today, the median household income is $75,000. Back then, they only had to spend ~2.5 times their income in order to buy a home. Today, we have to spend ~6 times our income to afford a home in the year 2024.

Inflation is real, and affecting every part of our daily lives.

College is getting more expensive (what used to be a tool to drive more earning potential, now falling by the wayside).

Food/Groceries are getting more expensive… New cars are more expensive too.

Leading many young Americans to believe that ‘the American dream is Dead’. (i.e. the home, a yard, two cars, a picket fence, yadda yadda).

The ‘American Dream’ is not dead – call me woefully optimistic, but I still believe that we can live our own form of the American Dream, both spending our money now for the things we enjoy AND saving and investing a small portion of our money, so that it builds up over time.

1. We have more access to information than ever before. For example: If you want to learn about using money now vs. later – you can just pull out your smart phone and do a Google search. Our parents couldn’t do that.
   
2. We have more earning potential than our parents did. There are more people pursuing advanced education now than ever – You can go to college online. You can just go to different learning resources (like the blog you’re currently reading) online, never having to pay a dime. You can utilize tools like ChatGPT to help you learn languages, learn how to program, learn how to cook. The opportunities are endless.
   
3. Now that we made it past the recent worldwide sickness, people are eager to travel and experience life – that can be your American Dream. You can, with a laptop and an internet connection, work from ANYWHERE in the world and be self-employed (I’m writing this from a library, on free wifi!)

You just have to take your skills and put in the effort – it’s doable. Make YOUR dream come true. Break the cycle, and start living now AND saving for later!

Resources:
Mr. Money Mustache
Financial Samurai
Ramit Sethi – I Will Teach You to Be Rich

As always,

-Michael, with Military.Cash – Follow me on Instagram with the icon below.

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